Apollo Origination II Sees Massive Asset Growth, Strong Investment Income

TL;DR

**Apollo Origination II is a debt-fueled growth machine, rapidly deploying capital into secured loans, but watch that leverage.**

AI Summary

Apollo Origination II (Levered) Capital Trust reported a net increase in net assets from operations of $18,761 thousand for the three months ended September 30, 2025, and $43,930 thousand for the nine months ended September 30, 2025. Total investment income for the nine-month period was $78,760 thousand, primarily driven by $75,185 thousand in interest income from non-controlled/non-affiliated investments. Expenses totaled $41,490 thousand for the nine months, with interest and other debt expenses accounting for $31,257 thousand. The company's total assets grew significantly to $1,325,113 thousand as of September 30, 2025, from $2 thousand at December 31, 2024, largely due to $1,268,508 thousand in investments at fair value. Debt also increased substantially to $679,076 thousand from zero. Net proceeds from the issuance of common shares amounted to $588,335 thousand for the nine months ended September 30, 2025, contributing to total net assets of $632,179 thousand. The company holds a diverse portfolio of first lien secured debt across various industries, including Aerospace & Defense, Commercial Services & Supplies, and Health Care Providers & Services.

Why It Matters

This filing reveals Apollo Origination II's aggressive expansion, with assets skyrocketing from $2 thousand to over $1.3 billion in nine months. For investors, this indicates a rapid deployment of capital into a diversified portfolio of first lien secured debt, suggesting a focus on income generation and potentially lower risk compared to unsecured debt. The significant increase in debt, however, warrants close attention as it impacts leverage and interest expense. In a competitive market for private credit, Apollo's rapid scaling could position it as a more formidable player, potentially affecting other lenders and borrowers seeking capital.

Risk Assessment

Risk Level: medium — The company's total assets surged from $2 thousand to $1,325,113 thousand in nine months, accompanied by a substantial increase in debt to $679,076 thousand. This rapid expansion and high leverage, while common in credit funds, introduces execution risk and sensitivity to interest rate fluctuations, as evidenced by $31,257 thousand in interest and other debt expenses for the nine months ended September 30, 2025.

Analyst Insight

Investors should monitor Apollo Origination II's future filings for sustained investment performance and effective debt management. Given the rapid growth and significant leverage, a deeper dive into the quality and performance of its underlying loan portfolio, particularly the first lien secured debt, is crucial to assess long-term stability and returns.

Financial Highlights

debt To Equity

1.07

revenue

$78,760,000

operating Margin

47.3%

total Assets

$1,325,113,000

total Debt

$679,076,000

net Income

$43,930,000

eps

$26.94

gross Margin

N/A

cash Position

$37,766,000

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $1.325B — Total Assets (Increased from $2 thousand to $1,325,113 thousand in nine months, indicating massive growth.)
• $679.08M — Total Debt (Increased from $0 to $679,076 thousand, reflecting significant leverage.)
• $43.93M — Net Increase in Net Assets from Operations (For the nine months ended September 30, 2025, demonstrating operational profitability.)
• $78.76M — Total Investment Income (For the nine months ended September 30, 2025, primarily from interest income.)
• $31.26M — Interest and Other Debt Expenses (For the nine months ended September 30, 2025, a major component of total expenses.)
• $588.34M — Net Proceeds from Common Share Issuance (For the nine months ended September 30, 2025, a key driver of capital growth.)
• 23,467,987 — Common Shares Outstanding (As of November 11, 2025, reflecting significant capital raising.)
• $26.94 — Net Asset Value Per Share (As of September 30, 2025, providing a per-share valuation.)

Key Players & Entities

• Apollo Origination II (Levered) Capital Trust (company) — Registrant
• $1,325,113 thousand (dollar_amount) — Total Assets as of September 30, 2025
• $2 thousand (dollar_amount) — Total Assets as of December 31, 2024
• $679,076 thousand (dollar_amount) — Debt as of September 30, 2025
• $18,761 thousand (dollar_amount) — Net Increase in Net Assets from Operations for three months ended September 30, 2025
• $43,930 thousand (dollar_amount) — Net Increase in Net Assets from Operations for nine months ended September 30, 2025
• $78,760 thousand (dollar_amount) — Total Investment Income for nine months ended September 30, 2025
• $31,257 thousand (dollar_amount) — Interest and other debt expenses for nine months ended September 30, 2025
• $588,335 thousand (dollar_amount) — Net proceeds from issuance of common shares for nine months ended September 30, 2025
• Delaware (company) — State of incorporation

FAQ

Risk Factors

• Significant Leverage [high — financial]: The Trust has taken on substantial debt, with total debt reaching $679,076 thousand as of September 30, 2025, compared to $0 at December 31, 2024. This high level of leverage amplifies both potential gains and losses, increasing financial risk.
• Investment Portfolio Volatility [medium — market]: The value of the Trust's investments, primarily first lien secured debt, is subject to market fluctuations. The net change in unrealized gains (losses) for the nine months ended September 30, 2025, was $1,190 thousand, indicating potential for significant shifts in asset value.
• Dependence on Investment Income [medium — operational]: The Trust's profitability is heavily reliant on interest income from its investments, which generated $75,185 thousand for the nine months ended September 30, 2025. Any disruption to this income stream, such as defaults or reduced interest payments, would materially impact net assets.
• Interest Rate Sensitivity [high — financial]: As a leveraged entity with significant debt, the Trust is exposed to interest rate risk. Rising interest rates would increase interest and other debt expenses, which already amounted to $31,257 thousand for the nine months ended September 30, 2025, potentially squeezing net investment income.
• Compliance and Reporting [low — regulatory]: As a capital trust, the entity is subject to various regulatory requirements and reporting obligations. Failure to comply with these regulations could result in penalties or operational disruptions.

Industry Context

Apollo Origination II operates within the credit investment sector, focusing on originating and investing in first lien secured debt. This market is characterized by a demand for financing from middle-market companies across diverse industries. The competitive landscape includes other credit funds, BDCs, and traditional lenders, all vying for attractive risk-adjusted returns. Industry trends show a continued need for flexible capital solutions, particularly for companies seeking growth financing or refinancing.

Regulatory Implications

As a financial entity, Apollo Origination II is subject to regulations governing investment funds and capital markets. Compliance with disclosure requirements, anti-money laundering laws, and investor protection rules is critical. Changes in financial regulations, particularly those impacting leverage or credit origination, could affect the Trust's operations and profitability.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios closely due to the significant leverage employed ($679.08M debt).
2. Analyze the performance of the investment portfolio, particularly the interest income stream, for any signs of credit deterioration or reduced yield.
3. Evaluate the impact of rising interest rates on the Trust's interest expenses, which were $31.26M for the nine-month period.
4. Assess the sustainability of asset growth, which was driven by substantial capital raises ($588.34M from share issuance).

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Established the financial position and operational results for the nine months ended this date, showing significant asset growth and leverage.
• 2025-12-31: Prior Year Financial Reporting — Provided a baseline for comparison, highlighting the dramatic growth in assets from $2 thousand to $1,325,113 thousand and the introduction of $679,076 thousand in debt.
• 2025-11-11: Common Shares Outstanding Update — Indicated 23,467,987 common shares outstanding, reflecting substantial capital raising activities.

Glossary

PIK interest income

Payment-in-kind interest income, where interest is paid in the form of additional debt or equity rather than cash. (A component of investment income for Apollo Origination II, contributing to total revenue.)

Non-controlled/non-affiliated investments

Investments in entities where the Trust does not have control or significant influence, and is not affiliated with the investee. (The primary asset class and source of investment income for the Trust.)

Net Asset Value Per Share

The value of a company's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share market value of the Trust's holdings as of September 30, 2025, reported at $26.94.)

Levered Capital Trust

A type of trust that uses borrowed funds (leverage) to increase its investment capital and potential returns. (Describes the structure of Apollo Origination II, explaining its significant use of debt.)

Capital in excess of par value

The amount received from issuing stock above its nominal par value. (A significant component of the Trust's equity, totaling $588,312 thousand, reflecting proceeds from share issuance.)

Year-Over-Year Comparison

The comparison to the prior filing (December 31, 2024) reveals a dramatic transformation for Apollo Origination II. Total assets have surged from a nominal $2 thousand to $1,325,113 thousand, primarily through a massive influx of investments. Concurrently, the Trust has taken on significant leverage, with debt rising from $0 to $679,076 thousand. This indicates a strategic shift towards a highly leveraged investment strategy, funded substantially by new equity issuance, which generated $588,335 thousand in net proceeds.

Key Financial Figures

• $0.001 — 7 common shares of beneficial interest, $0.001 par value per share, outstanding. Apo

Filing Documents

• none-20250930.htm (10-Q) — 5364KB
• none-ex31_1.htm (EX-31.1) — 18KB
• none-ex31_2.htm (EX-31.2) — 18KB
• none-ex32_1.htm (EX-32.1) — 10KB
• none-ex32_2.htm (EX-32.2) — 10KB
• 0001193125-25-278006.txt ( ) — 16224KB
• none-20250930.xsd (EX-101.SCH) — 1363KB
• none-20250930_htm.xml (XML) — 3459KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (Unaudited) 1 Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 (Unaudited) 2 Consolidated Statements of Changes In Net Assets for the three and nine months ended September 30, 2025 (Unaudited) 3 Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 (Unaudited) 4 Consolidated Schedule of Investments as of September 30, 2025 (Unaudited) 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 20 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 47

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 Table of Contents

FINA NCIAL INFORMATION

PART I. FINA NCIAL INFORMATION In this report, the terms the "Company," "we," "us" and "our" refer to Apollo Origination II (Levered) Capital Trust unless the context specifically states otherwise.

Consol idated Financial Statements

Item 1. Consol idated Financial Statements APOLLO ORIGINATION II (LEVERED) CAPITAL TRUST CONSOLIDATED STA TEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) September 30, 2025 December 31, 2024 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliated investments (cost - $ 1,263,060 and $ 0 at September 30, 2025 and December 31, 2024, respectively) $ 1,268,508 $ - Cash and cash equivalents 37,766 2 Receivable for investments sold 7,747 - Due from counterparties 3,417 - Interest receivable 7,605 - Other assets 70 - Total Assets $ 1,325,113 $ 2 Liabilities Debt (net of deferred financing costs of $ 4,922 and $ 0 at September 30, 2025 and December 31, 2024, respectively) $ 679,076 $ - Payable for investments purchased 1,763 - Interest payable 8,067 - Management fees payable 1,135 - Performance-based incentive fees payable 2,195 - Administration fees payable 350 8 Professional fees payable - 65 Accrued organizational costs 13 15 Other liabilities and accrued expenses 335 - Total Liabilities $ 692,934 $ 88 Commitments and contingencies ( Note 7 ) Total Net Assets $ 632,179 $ ( 86 ) Net Assets Common stock, $ 0.001 par value ( Unlimited shares authorized; 23,467,987 and 60 shares issued and outstanding, respectively) $ 23 $ 0 * Capital in excess of par value 588,312 1 Accumulated distributed earnings (losses) 43,844 ( 87 ) Total Net Assets $ 632,179 $ ( 86 ) Net Asset Value Per Share $ 26.94 $ N/A * Rounded value See notes to the consolidated financial statements. 1 Table of Contents APOLLO ORIGINATI ON II (LEVERED) CAPITAL TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2025 Investment Incom

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